UNION OF INDIA Vs. B C BASU

JUDGEMENT

(1.) THIS appeal by the Union of India as thej owner of the North East Frontier Rail-way Administration, is under Section 39 (1) (vi) of the Arbitration Act against the order of the Third Additional Subordinate Judge, Purnea, rejecting its objection to the award.

(2.) THE relevant facts, briefly stated, are that the respondents entered into a contract on 28-8-1957 for handling of the goods of the Railways including their loading and unloading from railway wagons into other wagons at Katihar Railway Station under a written agreement containing an arbitration clause. This handling work was done by the respondents from September, 1957 to October, I960.

(3.) THE trial court rejected all these objections and held that the appellant miserably failed to establish any misconduct on the part of the Arbitrators. It further held that the settlement arrived at in consequence of the discussions held in the meeting on 10-9-59 could not be said to be an independent contract and, therefore, the plea of the bar of Article 299 of the Constitution was entirely unfounded. Yet another objection that was taken fa the court below and also before us was that part of the claim of the contractor, namely, from Feb. 1959 to Oct. 1960 had become time-barred and, therefore, the Arbitrators committed an illegality in allowing the claim for this period. This objection was rejected by the court below on the ground that no such objection was taken by the appellant before the Arbitrators "nor any sufficient material was brought to his notice in this regard at the time of hearing of the application." THE learned Additional Subordinate Judge accordingly held that the award was fit to be accepted and ordered that it should be made the rule of the court. THE Union of India has accordingly filed the present appeal.